REG-FirstGroup PLC: Statement re South Western rail franchise competition <Origin Href="QuoteRef">FGP.L</Origin>

FirstgroupAnnouncement

07/09/2016 15:15

FIRSTGROUP PLC
SOUTH WESTERN RAIL FRANCHISE COMPETITION

First MTR South Western Trains Limited, a joint venture between FirstGroup plc
(the ‘Group’) subsidiary First Rail Holdings Limited (‘FRH’) and MTR
Corporation (UK) Limited (‘MTR UK’), has today submitted a bid to the
Department for Transport in respect of the South Western rail franchise.

The two shareholders have also entered into a joint venture agreement
governing First MTR South Western Trains Limited, which amongst other terms
provides that, in the event of a default by either shareholder, the other
shareholder will have the right to acquire the defaulting shareholder's shares
for fair value, such amount not being subject to any cap. As a consequence and
by application of Chapter 10 of the Listing Rules (in particular paragraph 5R
(3A) of Annex 1 to Chapter 10), the Group is required to comply with Listing
Rule 10.4.1. In compliance with that obligation, the Group provides the
following information: under the joint venture terms FRH holds 70% of the
equity in First MTR South Western Trains Limited and MTR UK holds the
remaining 30%, with MTR UK acquiring its shares from FRH for an aggregate
consideration of £30, which has been satisfied from MTR UK's existing
financial resources. First MTR South Western Trains Limited has no trading
history and has gross assets of £100.

Further information, FirstGroup plc:
Faisal Tabbah, Head of Investor Relations
Tel: +44 20 7725 3354



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